USD/CAD testing the resistance

The USD/CAD pair rose to 1.0510 today - it is the highest level since September 5. US dollar strengthened on the renewed expectations of the Fed’s QE tapering in the nearest future.

We see that the greenback is once again testing the resistance of a long-term bearish channel (currently at 1.0500). It is still a very big question whether the bulls succeed to break higher or not. A daily close above the 1.0500 level would become a bullish signal.

Further on the way a lot of buy orders are clustered around the 1.0550 mark. Key support lies at 1.0460/50 and 1.0400.